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Tonga Outer Islands Agriculture Development Project

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Tonga Outer Islands Agriculture Development Project ASIAN DEVELOPMENT BANK PCR:TON 26028 PROJECT COMPLETION REPORT ON THE OUTER ISLANDS AGRICULTURAL DEVELOPMENT PROJECT (Loan 1412-TON [SF]) IN THE KINGDOM OF TONGA December 2001 CURRENCY EQUIVALENTS Currency Unit - pa’anga (T$) At Appraisal At Project Completion (15 November 1995) (30 June 2001) T$1.00 = 0.8000 0.4649 $1.00 = T$1.2500 T$2.1510 ABBREVIATIONS AR - appraisal report BER - bid evaluation report CPD - Central Planning Department DP - direct purchase EA - Executing Agency EIRR - economic internal rate of return FIRR - financial internal rate of return ICB - international competitive bidding IS - international shopping MAF - Ministry of Agriculture and Forestry MLCI - Ministry of Labour, Commerce and Industries MOF - Ministry of Finance MOW - Ministry of Works NZODA - New Zealand Overseas Development Assistance PAT - Ports Authority Tonga PCR - project completion report PSC - project steering committee RRP - report and recommendation of the President SPRM - South Pacific Regional Mission TA - technical assistance TCC - Tonga Communications Corporation TTC - Tonga Telecommunications Commission NOTES (i) The fiscal year (FY) of the Government ends on 30 June. FY before a calendar year denotes the year in which the fiscal year ends. For example, FY2001 begins on July 2000 and ends on 30 June 2001. (ii) In this report, “$” refers to US dollars and T$ refers to Tongan pa’anga. CONTENTS Pages BASIC DATA ii MAP vi I. PROJECT DESCRIPTION 1 II. EVALUATION OF IMPLEMENTATION 1 A. Project Components 1 B. Implementation Arrangements 6 C. Project Costs and Financing 6 D. Project Schedule 6 E. Engagement of Consultants and Procurement 7 of Goods and Services F. Performance of Consultants, Contractors, and Suppliers 7 G. Conditions and Covenants 8 H. Disbursements 8 I. Environmental and Social Impacts 8 J. Performance of the Borrower and the Executing Agency 9 K. Performance of the Asian Development Bank 9 III. TECHNICAL ASSISTANCE 9 IV. EVALUATION OF INITIAL PERFORMANCE AND BENEFITS 11 A. Financial Performance 11 B. Economic Performance 12 C. Attainment of Benefits 13 V. CONCLUSIONS AND RECOMMENDATIONS 14 A. Conclusions 14 B. Lessons Learned 15 C. Recommendations 16 APPENDIXES 18 ii BASIC DATA A. Loan Identification 1. Country Kingdom of Tonga 2. Loan Number 1412-TON (SF) 3. Project Title Outer Islands Agricultural Development 4. Borrower Kingdom of Tonga 5. Executing Agency Ministry of Finance 6. Amount of Loan SDR2.434 million ($3.271 million) 7. PCR Number PCR:TON 665 B. Loan Data 1. Appraisal - Date Started 3 July 1995 - Date Completed 18 July 1995 2. Loan Negotiations - Date Started 7 November 1995 - Date Completed 17 November 1995 3. Date of Board Approval 12 December 1995 4. Date of Loan Agreement 29 April 1996 5. Date of Loan Effectiveness - In Loan Agreement 28 July 1996 - Actual 23 December 1996 - Number of Extensions 2 6. Closing Date - In Loan Agreement 30 June 2001 - Actual August 2001 - Number of Extensions Nil 7. Terms of Loan - Interest Rate 1 percent per annum - Maturity (number of years) 40 - Grace Period (number of years) 10 8. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 10 November 1997 8 October 2001 3 Years 11 months Effective Date Original Closing Date Time Interval 23 December 1996 30 June 2001 4 Years 6 months iii b. Amount ($ million) Original Final Amount Net Amount Undisbursed Category Allocation Allocationa Cancelled Amount Disbursed Balance Available Buildings 0.53 0.89 0.00 0.89 0.89 0.00 Roads 0.84 0.75 0.00 0.75 0.75 0.00 Vehicles 0.12 0.09 0.00 0.09 0.09 0.00 Equipment 0.08 0.00 0.00 0.00 0.00 0.00 Telecoms. 1.27 1.21 0.00 1.21 1.21 0.00 Consulting 0.19 0.25 0.00 0.25 0.25 0.00 Services Service Charge 0.12 0.08 0.00 0.08 0.08 0.00 Unallocated 0.49 0.00 0.00 0.00 0.00 0.00 Total 3.64 3.27a/ 0.00b/ 3.27 3.27 0.00 a Reduced total due to currency loss. b Savings of $4,988 cancelled. C. Project Data 1. Project Cost ($ million) Item Appraisal Estimate Actual Foreign Exchange Costs 2.85 3.27 Local Currency Costs 2.87 1.35 Total 5.72 4.62 2. Financing Plan ($ million) Appraisal Estimate Actual Item Foreign Local Total Foreign Local Total Exchange Currency Exchange Currency Implementation Costs Borrower-Financed 2.09 2.09 1.35 1.35 ADB-Financed 2.71 0.79 3.50 3.19 0.00 3.19 Subtotal 2.71 2.88 5.59 3.19 1.35 4.54 IDC Costs Borrower-Financed 0.00 0.00 0.00 0.00 0.00 0.00 ADB-Financed 0.13 0.00 0.13 0.08 0.00 0.08 Subtotal 0.13 0.00 0.13 0.08 0.00 0.08 Total 2.84 2.88 5.72 3.27 1.35 4.62 iv 3. Cost Breakdown by Project Components ($ million) Item Appraisal Estimate Actual Foreign Local Total Foreign Local Total Exchange Currency Exchange Currency Civil Works 0.74 2.01 2.75 1.72 0.48 2.20 Vehicles 0.09 0.11 0.20 0.09 0.06 0.15 Equipment 0.08 0.17 0.25 0.00 0.10 0.10 Telecoms. 1.72 0.19 1.91 1.21 0.43 1.64 Consulting 0.22 0.26 0.48 0.25 0.16 0.40 Services O&M 0.00 0.13 0.13 0.00 0.12 0.12 Total 2.85 2.87 5.72 3.27 1.35 4.62 4. Project Schedule Item Appraisal Actual Estimate Project Implementation Consultant March 1996 June 1998 Civil Works Contracts Construction of TTC building, Niuafo’ou Date of Award January 1997 September 1997 Completion of Work June 1997 January 1998 Construction of MAF building, ‘Eua Date of Award January 1997 August 1998 Completion of Work December 1997 February 1999 Construction of MAF building, Niuafo’ou Date of Award January 1997 March 1999 Completion of Work December 1997 October 1999 Construction of MAF building, Niuatoputapu Date of Award December 1999 October 1999 Completion of Work June 2000 April 2000 Construction of ‘Eua roads Date of Award January 1997 July 1997 Completion of Work December 2000 June 2001 Construction of Niuafo’ou roads Date of Award July 1999 November 1998 Completion of Work September 1999 October 1999 Construction of Niuatoputapu road Date of Award August 1999 June 1999 Completion of Work January 2000 December 1999 Supply, Delivery, and Installation of TTC Equipment Dates First Procurement June 1996 December 1996 Last Procurement June 1997 May 1997 Completion of Equipment Installation June 1997 December 1997 Start of Operations Completion of Tests and Commissioning July 1997 February 1998 Beginning of Startup January 1998 February 1998 v D. Data of ADB Missions Name of Mission1 Date No. of No. of Specialization Persons Person-Days of Members Fact-Finding 21 March - 8 April 1995 3 48 b, d, e Appraisal Mission 3-22 July 1995 4 68 a, d, e, g Inception Mission 24 February – 7 March 1997 2 20 a, h First Review 16-22 October 1997 2 14 a, h Second Review 20-26 June 1998 1 7 h Third Review 9-20 November 1998 1 11 h Fourth Review 15-28 September 1999 2 20 h, i Fifth Review 6-18 March 2000 2 28 e, h Sixth Review 4-13 October 2000 1 9 h Seventh Review 14-28 May 2001 2 28 f, h PCR Mission 10-23 July 2001 2 37 e, h ADB = Asian Development Bank, IDC = Interest During Construction, O&M =Operations and Maintenance, TTC = Tonga Telecommunications Commission, MAF = Ministry of Agriculture and Forestry, PCR = Project Completion Report. 1 a-engineer, b-financial analyst, c-counsel, d-economist, e-consultant specialist, f-control officer, g-programs officer, h-project officer, i-project assistant. vi MAP I. PROJECT DESCRIPTION 1. The Outer Islands Agricultural Development Project (the Project) was prepared to assist the Government of Tonga (the Government) in its efforts to achieve sustainable economic growth with a more equitable distribution of income, as set out in its Sixth Development Plan, 1991-1995. The Government had accorded high priority to the development of the agriculture sector and to development on the outer islands; the Project was designed to support these objectives. The islands selected for the project area were ‘Eua, a small island close to the capital Nuku’alofa, and the islands of Niuatoputapu and Niuafo’ou (the Niuas) which are small, isolated islands at the extreme north of Tonga’s territory. 2. In response to the Government’s request, the Asian Development Bank (ADB) approved a technical assistance1 (TA) to prepare a project to meet these objectives, and this was completed in January 1995. Subsequently, the Government and ADB agreed that the objectives of the Project would be to: (i) increase agricultural productivity and farm incomes on the outer islands, (ii) reduce the income disparities between households of the different island groups, and (iii) stimulate agricultural exports. These objectives were to be achieved by: (i) improving agricultural extension services, (ii) increasing and sustaining agricultural production systems on the Niuas and ‘Eua, (iii) providing market support, and (iv) providing infrastructure. 3. The Project as appraised comprised four components: (i) capacity strengthening in the Ministry of Agriculture and Forestry (MAF) to provide extension services to the outer islands; (ii) farming systems improvement through research and development with the aim of increasing productivity and sustainability; (iii) market support and development through marketing facilities and services; and (iv) infrastructure improvements including the construction of agricultural roads, telecommunications on the Niuas, tanks and piping for domestic water supplies, and quarantine facilities.
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